Altona Rare Earths shares soar as strikes Botswana asset deal

Tue, 09th Apr 2024 11:45

(Alliance News) - Altona Rare Earths PLC on Tuesday said it has struck a deal to acquire an up to 85% stake in a copper and silver asset in Botswana.

Altona Rare Earths shares jumped 60% to 1.80 pence each in London on Tuesday morning.

The Africa-focused resource exploration and development company has entered into an agreement with Ignate African Mining PL to acquire an interest in the Sesana project.

The company will acquire the interest for a consideration of USD110,000 in cash and USD250,000 in Altona shares, paid over four years in three tranches.

The licence covers an area situated on the Kalahari copper belt, host to some of the regions largest untapped copper and silver deposits.

Recent airborne geophysical data further validated the project's potential after identifying areas of prospective mineralisation.

Altona Chief Executive Officer Cedric Simonet said: "The acquisition of the Sesana project is in line with the implementation of Altona's portfolio diversification strategy."

The company expects the project to generate flow at a relatively low cost to complement its recent acquisition of the Kabompo South project in Zambia and its flagship Monte Muambe project in Mozambique.

By Elijah Dale, Alliance News reporter

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Altona Rare Earths